Benefit Sharing in Hydropower Development: A Model Using Game Theory and Cost–Benefit Analysis

Globally, hydropower is one of the most important energy sources, but its development often entails population displacement. Traditional economics cannot fundamentally resolve disputes over relocation compensation. In present study, we use game theory to model relationship between stakeholders. The main issue distribution benefits developers and affected population. To distribute more fairly rationally, costs for people full life cycle project, consider as project investors, adjust benefit based on internal rate return, assess rationality resulting plan. Under this benefit-sharing model, can share risks, effectively eliminate conflicts, ensure success. provides guidance formulation compensation people, a new paradigm study mechanisms development.